Planning to put your home on the market? Lots of sellers end up pricing their home too high. With the housing bust, homeowners are having a hard time being realistic about what their home is worth now compared to a few years ago when real estate hit its peak. According to a recent issue of Real Estate Adviser, here are some of the risks of over-pricing your home:
* Fewer people will look at your home. Potential buyers will miss it because it’s out of their price range.
* An over-priced home will suffer from a lack of showings. No one will want to waste their time with a home that is no priced well.
* Homes that are priced higher than they should be will actually end up helping their competition. Your high asking price will make similar homes that are priced lower look more attractive to buyers.
* A home priced too high could end up sitting on the market a while. The longer it sits on the market the less likely it will be to sell. Often homes on the market for an extended period of time get a negative stigma attached to them which can be hard to overcome.
* Buyers may come in with extremely low offers. Once your home has sat on the market for a long time low offers may come in from people who want to see how low you will go.
* If you do get an offer, if your price is set too high the appraisal may not reflect the value that you set. Often financing depends on accurate appraisals.